New Delhi, Dec 15 (): In the midst of overall slowdown affecting India, Prime Minister Manmohan Singh on Saturday said that the Centre is taking various steps to put the country back on the right track on a high growth path of 8-9 per cent.
“The government has just launched the process to revive the country’s economy in order to put it back to its trend growth rate of 8-9 per cent,” said Prime Minister Manmohan Singh while addressing the 85th Annual General Meeting of FICCI.
Stating that the overall financial system is passing through disorder, the Prime Minister said due to lack of enthusiasm, the country’s growth process was damaged extremely and also assured that the government is taking all possible steps to speed up the economic expansion and will also make the process collectively and regionally more comprehensive.
Making a confession of growth slowdown to a nine-year low of 6.5 per cent in 2011-12, the Prime Minister said that this year it is likely to be 5.8 per cent. However India was growing at a rate of more than 9 per cent after 2008 global economic crisis, added Mr Singh.
Criticizing the opposition parties which opposed the reforms, Prime Minister said,” There were few occasions when the government’s decisions were attempted to being halted, but due to confidence and courage we had in our mind for the well being of the people of the country we were able to implement.”
Further stating on the requirement to take forward its steps through constitution of Cabinet Committee on Investment to revive the economy, Manmohan Singh clarified the need to complete the exercise that has begun on GAAR and taxation of the IT sector.
The government will have to accelerate the disinvestment process to renew the equity markets, added the Prime Minister. Besides amendment to banking laws, the centre has also decided to get Parliament’s support for raising FDI cap in the sector of insurance from the current 26 -49 %.